Data Patterns Targets 20–25% Growth In FY26 On New Order Inflows

Defence and aerospace electronics solutions provider Data Patterns (India) Ltd. is aiming for 20-25% growth in revenue and profit in FY26, according to Chairman and Managing Director Srinivasagopalan Rangarajan. 

“Looking at the last year versus this year, we still retain the guidance of 20% to 25% topline and bottomline growth…One, on whatever products we deliver, which involves repeated and completed trials, we expect the contracts to happen. Two, because of the existing skirmishes on the border, some fast-tracking of contracts is expected,” he told NDTV Profit on Monday. 

The company is targeting Rs 2,000-Rs 3,000 crore in new orders over the next 18 months. It expects orders for radar systems, electronic warfare suites, seekers and avionics.

Rangarajan said the company has invested heavily in product development over the past one-and-a-half years. The company raised around Rs 400-Rs 500 crore through a qualified institutional placement to fund product development and expand its engineering team to nearly 1,100 personnel, and it continues to recruit. 

These funds are fuelling the creation of locally developed radars, fire control systems, EW suites and communication equipment. 

"India is going through a phase of looking inward. The government is fully supporting 'Make In India'...It is a large opportunity for Indian world-class systems to address the gap,” the top executive outlined.

Rangarajan highlighted that Data Patterns achieved its projected 20% bottom-line growth and 20-25% top-line growth in FY25. He acknowledged that margins in the fourth quarter were lower than typical. This was due to undertaking large contracts at reduced margins.

At the global level, the company sees an addressable market of Rs 20,000- Rs 30,000 crore. In the last financial year, exports to Europe, South Korea and the UK constituted over 15% of the company's revenue, according to the CMD.

Addressing concerns about an increase in trade receivables, Rangarajan pointed out that over 50% of the annual billing occurred in Q4 FY25. However, he reassured that with a debt-free status and nearly Rs 400 crore in the bank, the company's cash position is strong.